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CSC2 Canadian Securities Course Exam 2 is now Stable and With Pass Result | Test Your Knowledge for Free

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CSC2 Practice Questions

Canadian Securities Course Exam 2

Last Update 4 days ago
Total Questions : 232

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Question # 1

What must happen for a redemption to be processed from a mutual fund?

Options:

A.  

Payment for redeemed securities must be within two business days after the NAVPS is determined.

B.  

Mutual funds representatives must submit the order within two business days of when the order is received from the client.

C.  

The offering price of the mutual fund must be calculated.

D.  

The client redeeming the mutual fund must receive a Fund facts document.

Discussion 0
Question # 2

How does diversification work?

Options:

A.  

It can eliminate systematic risk from a portfolio.

B.  

It shows that the risk continues to fall proportionally as the number of stocks in the portfolio increases.

C.  

It can reduce the risk that the price of a specific security will change in a different direction from the market.

D.  

It is built on the concept of risk reduction by adding securities with perfect positive correlation to a portfolio.

Discussion 0
Question # 3

How do the fees differ between an F-class and front-end version of the same fund?

Options:

A.  

The management expense ratio is lower on the F-class fund.

B.  

The management expense ratio is higher on the F-class fund.

C.  

The fees are identical

D.  

The commission changed is higher on the F-class fund.

Discussion 0
Question # 4

What is the bottom price of a security ' s trading range at which most investors would sense value and be willing to buy it?

Options:

A.  

Reversal pattern.

B.  

Sentiment indicator.

C.  

Support level.

D.  

Moving average.

Discussion 0
Question # 5

A fixed-rate bond was originally priced at $100 and paid $5 per year in interest. Currently, the bond is trading at $102.75. What is the impact on the current yield of coupon of the bond as a result of the change in price?

Options:

A.  

The coupon is higher than 5%.

B.  

The current yield is higher man 5%.

C.  

The current yield is lower than 5%

D.  

The coupon is lower than 5%.

Discussion 0
Question # 6

Max bought $7,000 of fund units. Two years later, the total value of his portfolio went up to $10,000 and he decided to sell the fund. Max had received a total of $1,000 in reinvested dividends over the course of the holding period. What is the adjusted cost base of his investment?

Options:

A.  

$8,000.

B.  

$2,000.

C.  

$7,000.

D.  

$3,000.

Discussion 0
Question # 7

For what type of company is the dividend discount model least applicable?

Options:

A.  

One with changing dividend payments and a stable dividend growth rate.

B.  

One with stable dividend payments and a stable dividend growth rate.

C.  

One with stable dividend payments and a fluctuating dividend growth rate.

D.  

One with changing dividend payments and a fluctuating dividend growth rate.

Discussion 0
Question # 8

Which carrying charge is tax deductible?

Options:

A.  

Interest paid on funds borrowed to buy dividend-paying shares.

B.  

Fees paid for a safety deposit box.

C.  

Trustee fees for an RRI

F.  

D.  

Interest paid on an RRSP loan.

Discussion 0
Question # 9

What bond should an advisor recommend to someone who wants to hold bonds and maximize potential cap-tai gams when interest rates are expected to fall?

Options:

A.  

A short-term bond with a low coupon.

B.  

A long-term bond with a high coupon.

C.  

A short-term bond with a high coupon.

D.  

A long-term bond with a low coupon.

Discussion 0
Question # 10

What is most likely true of a portfolio that is managed from a value basis?

Options:

A.  

Portfolio turnover is high, so investors can expect to incur frequent capital gains

B.  

The portfolio will realize higher dividend yields than a growth equity portfolio

C.  

Stock selections tend to have a higher beta than those chosen by a growth manager

D.  

This portfolio style tends to perform best in up markets, with minimal gains in down markets

Discussion 0
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